The average time taken to resolve construction disputes in North America increased to an average of 17.7 months in 2017, an increase of two months from 2016, according to a report released by Arcadis.
Length of disputes in the region far exceeded the global average, the report says. Globally, the length of time to resolve disputes stood at 14.8 months, a one month increase over 2016.
The average value of North American disputes decreased to US $19M in 2017 from $21M in 2016. Globally, the figure stood at US $43.4M, up from $32.5M in 2016.
“Failure to properly administer the contract” remained the most common cause of construction disputes globally, and “errors and/or omissions in the contract documentation” remained the most common cause in North America. With positive economic drivers and larger and more complex projects anticipated this year, there is a critical need to embrace more sophisticated risk management and claims avoidance techniques, including leveraging digitalization, Arcadis says.
Related Stories
| Mar 22, 2012
Broker doesn’t have to inform contractor that insurer went broke, California court rules
A California appellate court ruled that an insurance broker did not have a duty to inform a subcontractor that a project’s insurer had gone bankrupt.
| Mar 22, 2012
Public agencies shouldn’t negotiate project labor agreements, says AGC official
When a public agency rather than the contractor negotiates a PLA with unions, it interferes with the right of employers and workers to reach their own agreements on working conditions and benefits, says Steve Isenhart, president of the Associated General Contractors of Washington.
| Mar 22, 2012
Proposed rule would let crane operators get licenses without prior city experience
The Bloomberg administration is considering letting operators of giant tower cranes get their license without requiring that they first run cranes as apprentices in the city for three years.
| Mar 22, 2012
Bill would reintroduce “opt-out” provision in lead paint law
The Lead Exposure Reduction Amendments Act of 2012 (S2148) would restore the "Opt-Out" provision removed from the Environmental Protection Agency's Lead Renovate, Repair and Painting (LRRP) rule in April 2010.
| Mar 15, 2012
New Florida building code establishes flood and storm surge provisions
The new 2010 code establishes minimum design and construction requirements to protect buildings from wind, rain, floods, and storm surges.
| Mar 15, 2012
Illinois city rejects international code due to home sprinkler requirement
Macomb, Illinois aldermen voted to recommend that the city not adopt 2012 international building and residential code standards requiring the installation of overhead sprinkler systems in newly constructed one-family and two-family homes.
| Mar 15, 2012
Tenant advocates propose licensing landlords in New York City
With thousands of New York City rental units posing potential dangers to tenants, city advocates are proposing measures to make landlords improve building safety.
| Mar 15, 2012
Construction industry a big winner in federal small disadvantaged business procurement
Last year, only 5% of federal contract dollars went to small disadvantaged businesses. Construction and facilities support firms were the biggest beneficiaries.
| Mar 15, 2012
ANSI approves new fall protection standards
The American National Standards Institute (ANSI) has approved two American Society of Safety Engineers' (ASSE) standards addressing fall protection.